Why is Salguti Industries Ltd ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Operating profit has grown by an annual rate -8.05% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) of 3.97 times
- The company has been able to generate a Return on Equity (avg) of 2.36% signifying low profitability per unit of shareholders funds
2
Positive results in Jun 26
- DEBTORS TURNOVER RATIO(HY) Highest at 5.92 times
- NET SALES(Q) Highest at Rs 31.11 cr
- PBDIT(Q) Highest at Rs 4.18 cr.
3
With ROCE of 5, it has a Attractive valuation with a 1.3 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 11.04%, its profits have risen by 13%
4
Majority shareholders : Promoters
5
Market Beating Performance
- The stock has generated a return of 11.04% in the last 1 year, much higher than market (BSE500) returns of 0.59%
How much should you hold?
- Overall Portfolio exposure to Salguti Industri should be less than 10%
- Overall Portfolio exposure to Packaging should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Packaging)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Salguti Industri for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Salguti Industri
11.04%
0.24
45.61%
Sensex
-6.25%
-0.47
13.44%
Quality key factors
Factor
Value
Sales Growth (5y)
8.93%
EBIT Growth (5y)
-8.05%
EBIT to Interest (avg)
0.89
Debt to EBITDA (avg)
7.51
Net Debt to Equity (avg)
4.13
Sales to Capital Employed (avg)
2.13
Tax Ratio
62.86%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.36%
ROE (avg)
2.36%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
17
Price to Book Value
2.46
EV to EBIT
24.71
EV to EBITDA
7.43
EV to Capital Employed
1.28
EV to Sales
0.50
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
5.04%
ROE (Latest)
-1.57%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
9What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 5.92 times
NET SALES(Q)
Highest at Rs 31.11 cr
PBDIT(Q)
Highest at Rs 4.18 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 13.44%
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Salguti Industri
Net Sales - Quarterly
Highest at Rs 31.11 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 4.18 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 13.44%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Debtors Turnover Ratio- Half Yearly
Highest at 5.92 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio






